The Senate Standing Committee on Finance has approved a proposal to impose taxes on elite private clubs. The meeting took place under the chairmanship of Senator Saleem Mandviwalla. FBR Chairman Rashid Mahmood Langrial said that these clubs are built for the luxury of a few thousand people. He stressed that many of them own land worth millions but contribute very little in taxes. He also claimed these clubs hold billions in their bank accounts.
Langrial pointed out that clubs like the Islamabad Club benefit only a small group. These clubs operate on valuable public land but do not pay fair taxes. He argued that this is unfair to ordinary taxpayers. According to him, such luxury must be taxed, especially when the country faces economic pressure. The committee agreed with the proposal and passed it.
In the same meeting, the FBR chief also shared changes for income tax in the upcoming budget. Income up to Rs600,000 will remain tax-free. But incomes between Rs600,000 to Rs1.2 million will now be taxed at 2.5%. He said paying Rs1,000 monthly on a Rs100,000 salary is not a burden.
Some senators raised objections to the changes. Senator Mohsin Aziz suggested the tax-free limit should be increased to Rs1.2 million. Senator Shibli Faraz pointed out inflation. He said that Rs50,000 today only has the value of Rs42,000. The committee also rejected a proposal to tax online businesses. They argued it would hurt small sellers and growing e-commerce platforms.
The decision to tax luxury clubs marks a significant shift. It aims to make the rich pay more and reduce unfair advantages. The committee’s approval shows a new focus on tax fairness. Meanwhile, relief for digital businesses may help promote growth. The budget proposals will now move forward for further approval.